Collaborate across the value ecosystem
New partnerships for Net Zero
The energy industry will not be able to succeed in realising Net Zero goals in isolation. Not only will they need to collaborate within their value chain, they must go one step further – reaching across traditional boundaries and forging partnerships to create whole new ecosystems. In this approach, the energy & utilities system should be viewed holistically, with interaction taking place between transport, networks and utilities.
The growing need to report on Scope 3 emissions – those not owned or controlled directly by companies – will require different parts of the energy value chain to work together in a whole new way. The Science Based Targets initiative (SBTi) requires that if Scope 3 emissions represent more than 40% of a company’s overall emissions, a target is put in place to measure the impact.13 Gathering data on Scope 3 emissions is a key challenge facing the industry and will require collaboration across the entire value ecosystem.
Digital will play an enabling role in bringing together the various players in the energy value chain for optimum efficiency. Through harnessing digital to collaborate across their wider ecosystem, they can unlock more value than they ever could have done in isolation – pooling their supply chain capability and innovation to augment their internal digital teams.14
Networks seize the Low Carbon Technologies opportunity
The decarbonisation of heat and transport is central to the energy transition – placing energy networks in a more central position than ever before. The transition to clean energy sources at a local and national level will require networks and other parties (local authorities, CPOs, aggregators, asset owners) to work together and coordinate investment.
Electric vehicle (EV) charging, for example, is central to achieving the UK’s Net Zero 2050 goals. It will require EV charge points and heat pumps to be connected to local electricity networks. UK Power Networks has forecasted that up to 700,000 electric heat pumps and 4.5 million electric vehicles will be connected to its networks covering London, the East and South East by 2030.15
This process will require different parts of the value chain to work together for optimum efficiency. Following consumer feedback that domestic vehicle-to-grid projects were confusing and time-consuming, UK Power Networks took steps to streamline the process, launching a digital portal – Smart Connect – to improve transparency and efficiency in the application process by connecting customers and installers.16
13 ‘How can companies address their scope 3 greenhouse gas emissions’, Science Based Targets, May 2018 14 Twelve shifts to Digital, Baringa 15 ‘Game changing’ digital portal for green technology launched, UK Power Networks, March 2021 16 ‘Game changing’ digital portal for green technology launched, UK Power Networks, March 2021